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AI ?
Patience young grasshopper
Artificial intelligence ( AI ) and innovation have become synonymous in recent times , with the promise of more efficiency than ever before without breaking the bank clearly proving too good to resist .
But what does the persistent evolution of AI mean for capital markets specifically ? In a world characterised by its complexity and high barriers to entry , is the promise of conclusive simplicity perhaps just too good to be true ?
The world of trading , and investment generally , is littered with the remnants of now-redundant solutions once thought to be
“[ Gen-AI ] is far more than just a trendy term ; if you stop to consider it , it ' s akin to a significant technological revolution , comparable in magnitude to the advent of the steam engine , electricity , computers , or the internet .”
TIMOTHEE CONSIGNY , CHIEF TECHNOLOGY OFFICER AT H2O ASSET
MANAGEMENT
70 // TheTRADE // Q3 2024
As the adoption of AI surges across capital markets , sentiment is on the up despite some trepidation , but what should be considered before everyone dives headfirst into integration ? CLAUDIA PREECE weighs risk versus reward and takes stock of where the newest AI capabilities could throw up some curveballs when it comes to trading .
the ‘ future ’ of the industry . A reminder perhaps that caution is our best friend when it comes to technological innovation . With AI ramping up , this new age is as unavoidable as it is daunting and remaining aware of potential complications is crucial .
Speaking to The TRADE , Timothee Consigny , chief technology officer at H2O Asset Management , asserts that there is a definite place for artificial intelligence within capital markets and the time for adoption is now .
“[ Gen-AI ] is far more than just a trendy term ; if you stop to consider it , it ' s akin to a significant technological revolution , comparable in magnitude to the advent of the steam engine , electricity , computers , or the internet . It enables the provision of on-demand intelligence , which is especially crucial in finance . We believe that early adopters will gain a significant competitive edge , pioneering the application of this technology .”
The potential of AI-powered workflows has been widely heralded , however the extent to which this could have a place in execution is as yet undetermined . Before the market gets carried away , it may be wise to consider that a minute of patience here may well mean ten years of peace .